Exercise 04-8 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Components Changeover Machining Setups Quantity 810 7,670 80 Finishing Welding Inspecting Overhead Cost Driver $ 453,000 Number of batches 301,200 Machine hours 228,000 Number of setups $982,200 $ 182,200 Welding hours 226,000 Number of inspections 62,050 Rework orders $ 470,250 $ 134,500 Purchase orders 30, 350 Number of units 60,260 Number of units $225, 110 3,700 820 170 Rework Support Purchasing Providing space Providing utilities 465 4,500 4,500 Additional production Information concerning its two product lines follows Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,500 800 405 485 2,270 40 70 310 Model 212 3,000 2,900 405 335 5,400 40 100 155 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $120 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 $ 0 Model 212 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $747 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price